KAKE DI HATTI Vs. SHREE FOODS

JUDGEMENT

(1.) The present petition has been filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes inter se the parties.

(2.) As per the averments made in petition, petitioner is a sole proprietorship concern and is a brand in food and hospitality sector having multiple chain of restaurants. Pertinently, owing to its established goodwill and client base, respondents approached the petitioner seeking franchisee.

(3.) It is further averred that several people who visited the respondents' outlet had complained of the substandard quality of food being served therein. This was bound to happen as the respondents had stopped procuring the exclusive spices and other material from the petitioner, which were essential to maintain the quality and consistency of the exclusive taste that is assured in the petitioner's products. As a result, petitioner's goodwill and brand reputation was getting diminished. Thereafter, petitioner terminated the agreement vide notice dtd. 24/2/2021 with effect from 8/1/2021.